Indian economy has improved a bit as the government tries to concentrate on the growth of the economy.

It was a rude shock for the small investors as the government announced that the interest rate on Public Provident Fund (PPF) has been slashed to 8.1% from 8.7%. The interest rate on Sukanya Samriddhi Account Scheme has been reduced to 8.6% from 9.2%. The interest rate on 5 Year Senior Citizens Savings Scheme has been cut to 8.6% from 9.3%.

The market expects RBI to cut the interest rate at its monetary policy review on 5 April 2016. We will have to check if the expectation comes alive. This week end the near month F&O contract will be rolled over to the next month which would indicate the player’s mindset.

Last week many stocks run up sharply. Technically the index has bottomed out at around 6900 and currently the up move indicates a bullish signal. Only when the Nifty sinks below 7200 the market is now in the bearish sign. There may be a consolidation next week owing to the F&O expiry. We can expect the Virat Kohli effect once Nifty crosses the coveted 8000 mark. However the investors may buy quality stocks whenever the market offers value.